SPLASH: Steve Webb has said OAPs can blow their pensions on Lamborghinis if they want to [ALAMY/GETTY]

He said people on pensions are adults and they can make their own choices.

The pension scheme will change in 2015, with workers having the option to use their saved cash as they like – rather than having to put away a guaranteed annual income.

And Lib Dem minister Mr Webb said the government will not have a say in how pensioners will spend their money.

He said: One of the reasons we can be more relaxed about how people use their own money is that with the state pension coming in, the state pension takes people above those sorts of means tests.

"So actually, if people do get a Lamborghini, and end up on the state pension, the state is much less concerned about that, and that is their choice."

BELIEF: George Osborne believes pensioners would not take such a big risk [REUTERS]

“IIf people do get a Lamborghini, and end up on the state pension, the state is much less concerned about that, and that is their choice.”

Steve Webb, Pensions minister

Talking on BBC's Newsnight, he said: "It is people's own money. We are not going to cast them adrift.

"We will guarantee them guidance, information, education but ultimately we are making sure they have a decent state pension but if they want to spend their money sooner rather than later, we are treating people as adults."

The flashy Italian cars can sell for hundreds of thousands of pounds with the latest Lamborghini Huracan going up for sale at £165,000.

But Chancellor George Osborne said it is less than likely that retired people will "blow" their cash.

He said: "We have a more generous basic state pension, less means-testing and that enables us to get rid of a quite old fashioned set of government requirements."

He said the "makers, doers and savers" would be the ones rewarded by the new scheme.

PROPOSAL: The Tory 'bingo and beer ad' did not go down well [PA]

Shadow Chancellor Ed Balls said he has fears over the potentially "reckless" idea.

He said: " Will people with ordinary-sized pension pots be able and encouraged to withdraw all of their pension savings from their pension pot and either try and invest it themselves or spend it?

"And off they do, what happens when the money runs out? Who then picks up the tab?"

The scheme is just one part of the Tory Budget proposals including a new "bingo and beer" tax that was announced earlier this week.